How Behavior-Based Safety Can Enhance Productivity and Growth in the Construction Industry: An Economic Analysis

Sudharsan, R. and Vinayagam, K (2025) How Behavior-Based Safety Can Enhance Productivity and Growth in the Construction Industry: An Economic Analysis. In: 108th Annual Conference of the Indian Economic Association (IEA)., 27th to 29th December 2025, VISTAS.

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Abstract

The construction industry in India contributes approximately 8–9% to GDP and employs nearly 51 million workers, yet it continues to face a serious safety crisis characterized by high accident and fatality rates. This paper examines how Behaviour-Based Safety (BBS) simultaneously enhances workplace safety and productivity within the Indian construction sector. Drawing upon international case studies and adapting them to the Indian context, the study demonstrates that BBS can reduce accident rates by 30–45%, improve project schedule adherence by 10–14%, and generate substantial economic returns with an estimated Year-1 ROI ranging from 1,802% to 2,654%. Although implementation costs are estimated at ₹60 lakh annually for a medium-sized project, the benefits significantly outweigh the investment through reduced accident costs, improved productivity, lower absenteeism, and enhanced workforce engagement. At the national level, widespread adoption of BBS could prevent thousands of annual fatalities, generate additional economic growth, and create employment opportunities. The study proposes an implementation framework and policy recommendations for integrating BBS into India’s construction industry to achieve sustainable productivity growth and improved occupational safety outcomes.

Item Type: Conference or Workshop Item (Paper)
Subjects: Management Studies > Management
Domains: Economics
Depositing User: IR Admin
Date Deposited: 25 Aug 2026 07:27
Last Modified: 25 Aug 2026 07:31
URI: https://ir.vistas.ac.in/id/eprint/21753

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